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Quezon City
January 5, 2018
SEC. 2. Definition of Terms. – For purposes of these Regulations and for a more
effective enforcement and collection of excise taxes, the following words and phrases shall
have the meaning indicated below:
2.2.Cosmetic Surgery shall refer to a type of plastic surgery that aims to improve a
person’s appearance, through invasive cosmetic procedures, surgeries, and body
enhancements directed solely on improving, altering, or enhancing the person’s
appearance and do not necessarily promote the proper functions of the body or
prevent or treat illness or disease. Cosmetic surgery can be performed on all areas
of the head, neck, and body. Since the treated areas function properly, cosmetic
surgery is elective.
2.3 Reconstructive Surgery shall refer to another type of plastic surgery which aims
to improve function and give a normal appearance to a part of a person’s body
that has been damaged, ameliorate a deformity arising from, or directly related to,
a congenital or developmental defect or abnormality, a personal injury resulting
from accident or trauma, or disfiguring disease, tumor, virus or infection.
2.4. Invasive Cosmetic Procedure shall refer to a surgery that is carried out by
entering the body through the skin or through a body cavity or anatomical
opening, but with the smallest damage possible to these structures. Invasive
Cosmetic Procedures shall include, but not be limited to the following:
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1. Liposuction
2. Laser Liposuction
3. Breast Augmentation
4. Breast Reduction Mammoplasty
5. Breastlift/Mastopexy
6. Buccal Fat Reduction
7. Buttocks Augmentation
8. Chin Augmentation
9. Facelift/Necklift
10. Featherlift – Aptos – Thread Lift
11. Hair Restoration/Transplantation
12. Blepharoplasty or Eyelid Surgery
13. Vulvovaginal Surgery
14. Abdominoplasty or Tummy Tuck
15. Stem Cell Auto Grafting
16. Rhinoplasty/Alar Trimming
17. Otoplasty
18. Cobra Coglift
2.5.Non-Invasive Cosmetic Procedure shall refer to a conservative treatment that does
not require incision into the body or the removal of tissue, or when no break in the
skin is created and there is no contact with mucosa, or skin break, or internal body
cavity beyond a natural or artificial body orifice. Non- Invasive Cosmetic
Procedures shall include, but not be limited to the following:
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SEC.3. Rate and Base of Excise Tax. – In general, there shall be levied, assessed
and collected excise tax imposed under Section 150-A of the Tax Code, equivalent to five
percent (5%) based on the gross receipts derived from the performance of services, net of
excise tax and value added tax on invasive cosmetic procedures, surgeries and body
enhancements directed solely towards improving, altering, or enhancing the patient’s
appearance.
For purposes of this regulations, the term “Gross Receipts” means the total amount of
money or its equivalent representing the contract price including deposits applied as
payments for services rendered and advance payments actually or constructively received for
services performed or to be performed for another person, excluding five percent (5%) excise
tax and value added tax (VAT).
An excise tax is considered an indirect tax, meaning that the service provider
who is the statutory bearer of the said excise tax is expected to shift the tax by billing
the same to the customer-client.
Excise taxes are typically imposed in addition to another indirect tax such as
VAT. The service provider is hereby authorized to act as withholding agent for the
five percent (5%) excise tax billed and is ultimately liable to remit the excise tax
collected from the client/customer. The five percent (5%) excise tax to be withheld
and remitted is based on gross receipts net of VAT and is considered final and no
adjustment shall be allowed to be made by the statutory bearer of the said excise tax.
Under existing rules on goods subject to excise taxes, the excise tax return is
required to be filed and the excise tax paid by the manufacturer or producer of the
goods before removal from the place of production. However, Section 150-A (Non-
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SEC. 4.130.2. Time for Filing of Return and Payment of the Tax. –
Every person liable to withhold/remit the excise tax imposed herein shall file a
monthly return of its monthly gross receipts within ten (10) days following the close
of the month using BIR Form No. 1620-XC (Monthly Remittance Return of Final
Withholding of Excise Tax on Cosmetic Procedures), together with the Summary of
Invasive Cosmetic Procedures Performed (please refer to prescribed format on Annex
A hereof) as an attachment to the said form for submission via email at
xcp.attachment@bir.gov.ph.
Except as the Commissioner otherwise permits, the return shall be filed with
and the final excise tax withheld remitted to any authorized agent bank (AAB) under
the jurisdiction of the Revenue District Office/BIR Office where the taxpayer (Head
Office of the business establishment) is registered or required to register.
For taxpayers located outside the National Capital Region (NCR) and in cases
where there are no duly accredited agent banks within the municipality or city, Excise
Tax due shall be filed and payments made to the Collection Agent or duly authorized
Treasurer of the Municipality/City where such taxpayer (head office of the business
establishment) is required to be registered.
In cases where no service subject to excise tax is performed and there areno
payments received,the Monthly Remittance Return of Final Withholding of Excise
Tax shall still be filed with Excise Large Taxpayers Field Operations Division
(ELTFOD) for Large Taxpayers/Revenue District Office for taxpayers in the National
Capital Region (NCR)/Excise Tax Area (EXTA) in Regional Offices for taxpayers
outside NCR.
Taxpayers filing via EFPS shall comply with the provisions of the EFPS
Regulations.
SEC.4.130.4. Exceptions. –
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and payment of excise tax other than as prescribed under Section 130, Chapter I, Title
VI of the Tax Code, as amended.
SEC.5. Exclusions. – The Excise Tax imposed herein shall not apply to non-invasive
cosmetic procedures and surgeries necessary to ameliorate a deformity arising from or
directly related to, a congenital or developmental defect or abnormality, a personal injury
resulting from an accident or trauma, or disfiguring disease, tumor, virus or infection which
shall include, but not limited to, those enumerated in Section 2(f) of this Regulations.
SEC.6.1. Application for Permit to Operate. – Any person subject to excise tax
under Section 150-A of the Tax Code, as amended, shall file an application for a Permit to
Operate with the Excise LT Regulatory Division (ELTRD) BIR National Office (whether
Large or Non-Large Taxpayers) not later than fifteen (15) days from the effectivity of this
Regulations.
c. Mayor’s Permit;
d. BIR Certificate of Registration (with latest registration fee BIR Form 0605);
Every person subject to excise tax under Section 150-A of the Tax Code, as
amended, shall register as Excise Taxpayer engaged in the performance of Invasive
Cosmetic Procedures with the Excise LT Regulatory Division (ELTRD) for Large
Taxpayers or with the Revenue District Office (RDO) for Non-Large Taxpayers
where the taxpayer is required to be registered for updating of Certificate of
Registration. The application for registration shall be filed within ten (10) days from
the effectivity date of this Regulations.
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6.3.1 Invoicing Requirements. – Every person subject to excise tax herein imposed
shall issue:
1. An Official Receipt for services performed whether invasive/non-invasive.
2. The following information shall be indicated in the Official Receipt:
a. The total amount which the patient/client pays or is obligated to pay to the
service provider including the excise tax and value added tax: Provided,
that:
1. The amount of excise tax shall be shown as a separate item in the OR;
2. Discounts given shall be indicated in the OR, otherwise the same shall
not be allowed as deduction from gross receipts;
3. If the procedure performed is non-invasive and considered exempt
from excise tax, the term Exempt from Excise Tax shall be shown on
the OR;
4. If the services performed involved both invasive (excisable) and non-
invasive (exempt from excise tax) procedures, the receipt shall clearly
indicatethe breakdown of the amount received between its taxable and
exempt components and the calculation of excise tax on each portion
of the procedure performed shall be shown on the receipt: Provided,
that the service provider may issue separate ORs for the excisable and
exempt components of the services rendered.
Illustration:
To improve her body shape, Starlet S engaged the services of Dok Salamat, a
well-known cosmetic surgeon in the country, to perform a liposuction procedure on
her thighs, and Dok Salamat charged Starlet S the amount of P50,000.00 inclusive of
12% VAT for the service to be rendered.
1. Name of Patient;
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Further, the following penalty provisions are hereby prescribed pursuant to the
provisions of the Act as follows:
1. Any person subject to excise tax under Section 150-A of the Tax Code, as
amended, found liable for any of the acts or omissions in violation of the Act and
its implementing Regulations shall be fined treble the aggregate amount of
deficiency taxes, surcharges and interest which may be assessed pursuant to the
provisions of this Act;
2. Any person liable for any of the acts or omission prohibited under the Act and its
implementing Regulations shall be criminally liable and penalized under Section
254 of the NIRC, as amended;
3. Any person willfully aids or abets in the commission of any such act or omission
shall be criminally liable in the same manner as the principal; and
SEC. 8. Transitory Provision. – For the effective implementation of the Act, the
following guidelines shall be followed during the transitory period:
3. The BIR Form No. 1620-XC (Monthly Remittance Return of Final Withholding
of Excise Tax on Cosmetic Procedures) is available for downloading from the BIR
website for purposes of remitting Final Withholding of Excise Tax on cosmetic
procedures and shall be manually filed with the BIR, together with the prescribed
attachment to the said form (Summary of Invasive Cosmetic Procedures
Performed) for submission via email at xcp.attachment@bir.gov.ph.
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SEC. 10. Repealing Clause. – All Rules and Regulations and other issuances or
parts thereof, inconsistent with the provisions of these Regulations are hereby revoked,
repealed or amended, accordingly.
SEC. 11. Effectivity. – These Regulations shall take effect after fifteen (15) days
following publication in leading newspapers of general circulation.
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